When Dave and I were married two years ago his family moved into the home I was living in. It's not a real big home for 7 people, but we manage fine. But being able to figure things out like towel racks in a bathroom has been interesting.
Having 5 children and only 1 towel rack was not going to work unless I wanted to have them grab a clean towel everyday. No thank you to that much laundry. So this was my solution. I decided peg board would do the trick, but didn't want ugly brown stuff on my bathroom wall making it look like a garage. I found this online after much searching. It has worked out great. The kids have 2 hooks each that they can put their towels and robes on. They each have their own bins that their toothbrushes can go in. Then there is one larger bin that the brushes and combs can go in. I put their names with letter stickers on the front of their little bins too.
Sometimes you just have to think outside the box.